Thai restaurant bills combine two things guests notice, VAT and the service charge, and one thing accountants notice: who the service charge belongs to.
VAT at 7%
VAT in Thailand is 7%. The statutory rate is 10%, reduced by royal decree and renewed periodically, so confirm the rate in force before each financial year. Menu prices are normally quoted with VAT included.
The 10% service charge, and whose money it is
A 10% service charge is customary in hotels and upscale restaurants. Two points matter:
- It is taxed. VAT is charged on the service charge even when it is passed on to staff.
- It usually belongs to the staff. When it is pooled and paid to the team, book it as money owed to them, not as the restaurant's income. Otherwise your revenue looks higher than it is.
A full tax invoice
A full tax invoice (ใบกำกับภาษี) shows:
- The words ใบกำกับภาษี (Tax Invoice)
- Your name, address and 13-digit Tax ID
- The invoice number and date
- The description, value and VAT shown separately
Rounding to the baht
Totals are rounded to the nearest baht. Show the round-off on the bill and book it.
The monthly return
VAT is filed monthly (ภ.พ.30): output VAT on sales and on the service charge, less input VAT on purchases. Registration is compulsory above ฿1.8 million annual revenue.
In Feazio, Thai restaurants get VAT inside the price, a 10% service charge that is taxed and held for staff, full tax invoices with their Tax ID, totals rounded to the baht and the month's output and input VAT ready for ภ.พ.30. Try the free VAT calculator.
This is general information, not tax advice. Confirm with your accountant or the Revenue Department.